After their defeat in the Great War of 2009, Indonesia suffered a population decrease, dropping from its height of 15,000 citizens to under 9000. Indonesia also suffered economic setbacks when it returned Western Siberia to Russia, and lost Western Australia in an EDEN backed resistance war. Both these regions were heavily invested in by Indonesia and were the crux of its economy, and while they had time to prepare for the return of Western Siberia as well as being financially compensated for their loss by the Russian government, Western Australia was lost when EDEN tanked the battle unexpectedly.

In Europe, Hungary declared war on Slovakia and conquered the country in under a day, claiming it was because Slovakia was hosting EDEN war games, though Poland and Canada were the only EDEN nations with alliances with Slovakia at the time. There had already been calls for an invasion of Malaysia in the Indonesian media, and many speculated Indonesia would use Malaysia's alliances with EDEN countries as a casus belli for an invasion.

The idea for war to rejuvenate Indonesia's economy and create a baby boom grew among Indonesians, and after surviving an impeachment vote, Indonesian President Wonder Forward officially announced Indonesia's declaration of war against Malaysia[1], and put up a vote which passed Congress by a large margin. The reasons for the war vary, some citing Malaysia granting Indonesia's enemies the use of a training war, some saying it is based on the real-life ethnic tensions and others claiming Indonesia was just bored.

War

Indonesia did not attack Malaysia immediately after they declared war. During this period, several countries were able to renew their alliances with Malaysia, including the USA, Croatia and Canada, while some PEACE nations, who disagreed with Indonesian actions, signed alliances with Malaysia as well (Italy and France). The first attack came on 12 November 2009, when Indonesia attacked Southern Thailand, Malaysia[2]. Malaysia and Thailand merged into one country, the Federal Republic of South East Asia, back on 3 August 2009, after a Romanian group had PTO'd Thailand[3]. Indonesia, by attacking a Thai territory of FRoSEA, did not trigger Malaysia's alliances. Despite support from a few foreign mobile units, Southern Thailand was conquered by Indonesia.

Malaysia and her allies then opened a series of resistance wars in all the Thai regions, liberating them and denying Indonesia the option of further attacking Malaysia there. On 15 November, Indonesia attacked Sarawak, Malaysia, right after the Philippines had attacked Sabah for war games. Being an original territory, this activated Malaysia's 27 alliances, who won the region by a large amount, even with the battle with the Philippines ongoing. After the battle, Indonesia began an emergency population build-up of Karnataka[4], their last economic stronghold and a former region of India. They feared that Malaysia, now with its powerful alliances, would region swap with Thailand and India in order to attack occupied Indonesian territories (therefore not activating Indonesia's own formidable alliance by attacking them directly).

Indonesia attacked Sabah before the battle of Sarawak ended, and once again lost[5]. Not having attacked any other region before the end of the battle, Indonesia lost the initiative in the war, and couldn't attack for another 24 hours. Indonesia has continued to attack Malaysian territories at will, not fearing Malaysian retaliation.

Indonesia continued attacking Malaysian territories as training wars until November 27, when Indonesia launched its first serious attempt to annex Malaysia. Of the 3 Malaysian regions, 2 were lost. Sabah was saved by French tanks.

Results

The invasion of Malaysia exacerbated tensions within the PEACE alliance, which Indonesia was a member of. The declaration of war again Malaysia took place only days after the Hungarian invasion of Slovakia which was heavily criticized by some PEACE nations. Italy, a founding member of the alliance, announced they were leaving PEACE Global Community, citing a divergence in ideologies between them in the more powerful PEACE countries (ie, Indonesia, Hungary, Serbia, Russia). Italy and France, another PEACE nation, both signed alliances with Malaysia, one of the first times members of PEACE have actively fought against one another in combat. Other PEACE nations, like the South American countries in the ALA alliance and small European members of the alliance, like Austria, condemned Indonesia's invasion. Differences in the alliance became irreconcilable, and in the following days, Indonesia, Hungary, Iran, Russia and Serbia, the most powerful PEACE members, left the alliance. This would soon be followed by Portugal, Slovenia, Latvia, Estonia, Chile, Turkey and many others also leaving the alliance, and would go on to form the PHOENIX alliance.